VHM Ltd. has approved the immediate full-scale development at its flagship Goschen rare earths and mineral sands project in Victoria.
The board’s approval to move straight to a processing capacity of five million tonnes per annum (Mtpa) marks a significant shift from the previously proposed staged 1.5Mtpa start.
The decision to bypass the pilot-scale phase is underpinned by the project’s robust permitting status. Goschen has secured all major mining and environmental approvals, including its mining licence and EPBC Act clearances.
By hitting the ground running at 5Mtpa, VHM aims to capitalise on the urgent global shift toward Western-aligned supply chains for critical minerals.
The company noted that the move to full capacity provides immediate exposure to large-scale production, offering superior operating leverage and cashflow fundamentals compared to a smaller start.
The project is strategically positioned to supply essential materials for clean energy, defence, and advanced manufacturing.
Operating at full 5Mtpa capacity positions VHM to meet growing global demand for a secure critical minerals supply.
This strategy has already garnered significant international interest, with Export Finance Australia (EFA) providing a letter of support for up to AU$75 million, and the Export-Import Bank of the United States (EXIM) expressing interest in providing up to US$200 million (AU$304 million) in financing.
Located in Victoria’s infrastructure-rich Loddon Mallee region, Goschen is a dual-commodity asset.
It will produce both rare earth elements, including neodymium, praseodymium, dysprosium, and terbium and heavy mineral concentrates like zircon and titanium dioxide.
VHM will now undertake a comprehensive refresh of capital cost estimates to reflect current market conditions.
This work is slated for completion by June 2026, aligning with a planned mid-year final investment decision (FID).
With a shallow-pit, truck-and-shovel mining method and a conventional processing flowsheet, VHM remains confident in the project’s technical foundations as it moves toward construction.
